Electrical Business Medical Examination Report

February 2011 "World Network Business" magazine cover article Electronic Business Examination Report

Why the current e-commerce in the good situation, the entire business of the real operation of the industry is still in the entire industry loss of the state, very worthy of people to ponder.

Article/Shenzhen 30 to 50 e-Commerce Co., Ltd. CEO Shangxiang

The recent e-commerce is very hot, the website of the business is very warm, constantly have different players into the electricity quotient, constantly have the news of the venture. E-commerce is also in the rapid development of the State, this fiery situation has no need to describe more, but in fact, what is the real status of the current industry?

The first category: The listed consumer keyword "troubled"

Currently listed two companies, in fact, are not comfortable: Mai Lin was sued by U.S. investors, Dangdang Guoqing recently and Morgan Stanley on Sina Weibo on the fight, but also exposed a lot of Dangdang's insider, and even the suspicion of false performance. In fact, two of the listed companies are the loss of nearly 10 years of electronic business enterprises, are listed only because of "being profitable", the listed company's real operating situation is likely to be a loss.

The second category: VC supported by the main word "loss", "Burn Money"

This type of consumer to Beijing East, Fank as the representative, is not only in a huge loss, but also in the support of venture capital to burn money enclosure. This type of consumer also includes the Massamasso, Amoy, and so on, almost all of China to obtain VC capital of the keywords are "loss" and "burn money", those who claim to have been profitable to the boss, is only "wishful" and no one believes that the PR rhetoric.

Category III: Small entrepreneurial consumer keyword "collapse"

The current small entrepreneurial type of business has been the failure of the news. Previously, I attended a Shenzhen Electric Business forum Statistics that last year, there were thousands of small companies closed the door. The current line of business is recognized as the starting threshold for the start of the enterprise is 20 million yuan, no 20 million yuan do not touch the platform, this has become a real operational and operational experience of the electric firm within the consensus. This year, the cost of the network promotion of the electric business is no suspense to increase the background of 2 to 3 times times, no doubt for small businessmen even worse.

Fourth Category: Health care products or TV shopping industry background of alternative consumer keyword "Decline"

To decorate the net as the representative of the actual effect of network marketing model, by virtue of Gaumauli imitation products and rough shouting strategy, access to more than regular 10 times times the promotion of the ROI (ROI). However, after two years of these alternative consumer fires, they are now in recession because of their short-term actions being "retaliated" by markets and consumers.

Category Fifth: The traditional enterprise of the Consumer keyword "Test water"

At present, the traditional enterprise online sales of more than 50% of the basic from Taobao, most of the traditional enterprise's own platform is still in the "device" stage, basically no sales and influence. Alibaba China Business Department general manager Xiaofeng recently also said, electronic commerce wants to play very hard, he before "cheat" the ceibs EMBA classmate do electric quotient, many traditional enterprise bosses all wasted tens of millions of yuan and nothing, currently only a success. "Marketing may be one of the most important skills in e-commerce," he says. Marketing must not be more than who spends more money, but can effectively use the capital invested. ”

Category sixth: "No success stories" in vertical industry

Many categories of industries, Taobao on the wind, but the application to the company does not really have a successful case. This is true of many industries: such as cosmetics industry, there is no sales of billions of vertical consumer appearance, the mother and the child, even red children also appeared business problems, other mother and child to make life more difficult; household industry, in addition to Taobao can be successful sales, the current Taobao outside the success of the precedent; Toys class, Baidu Department of Business entrepreneurs have just begun to invest in this industry, but then all give up, so far the toy electric dealer has no success examples ... There are almost no vertical categories of business day sales of thousands of orders of the Electronic business site, and these industries under the traditional line of the annual sales of billions of dollars abound.

Category seventh: Community-e-commerce keyword "looks beautiful"

Although the community of E-commerce prospects are very good, but the current community e-commerce can not really continue to produce sales. On the whole, the community is still in the sales of direct promotion of the role of zero, the tomato tree is only one of the failure cases. An internal data show that last year, a good buy sales One-third from SNS category site, but almost 100% through the way of advertising, the so-called Marketing 2.0 model has not produced an order.

E-commerce marketing model, in China currently only group buying and limited-time snapping, can be proven to be the actual performance of sales. Almost all other modes of business, such as community-based E-commerce, have not been proven to be big and produce results.

Category eighth: Retail business

In the United States, the top 10 in addition to Amazon, the other is the retail industry background of the business, while China's top 20 of the consumer, none of the traditional retail industry. Although Su Ning and Yintai in the traditional retail performance, but also through the press release exaggerated 10 times times sales to enhance confidence.

Why the current e-commerce situation, the whole business of the real operation results are still in the loss of the state, it is worth pondering.

First of all, from the general trend analysis, according to the 28 principle, currently the entire business is still in a very small market:

' At present, about 20% of the total population of China is online. Of these 20% of the Internet, about 20% of the people will be online shopping;

And about 80% of the net shoppers are shopping on Taobao;

' The whole of the business is very small niche market, that is, 20%*20*20% equivalent to eight out of 10,000 of the population market;

' 80% of the offline people have never shopped online.

Therefore, China's e-commerce in the current background, many of the Big C Taobao is profitable, because they targeted at 80% of the online shopping crowd, and the majority of consumers are losing, because the business is still only for the 8 of the small crowd, difficult to profit is very easy to understand.

The second reason is that many of the business people who fail or are not profitable are the problems of the operating rhythm.

If you can understand the above mentioned e-commerce or the status quo and the fact of the business, the operator should use small steps to run faster than fast running pace. Because China's e-commerce is only the initial stage of rapid development, rather than the mature stage of rapid development. Many electrical business failures such as PPG, are running too fast and lead to the result of the pace.

The third reason and lesson: cash flow is the blood of the entrepreneur.

The cash flow is the blood of the company's Web site in a context where the current industry is generally not profitable. "World Network Business" This issue of the cover of the example of the electricity business site, many have lost their ability to hematopoiesis, failure or decline is inevitable. Deep understanding of cash flow, there is no experience, is the measurement of a Business-to-consumer electric chamber will not do business, can do business in one of the most important standards, and good cash flow requirements must have a good supply chain as a prerequisite.

Many of the martyrs of the future to us, the lesson of the latter is: the initial stage of the electric business start-up is to do the cash flow is positive. In China, the general still does not have the profitability of the situation, in the supply chain management level, if the site sales of 1 million yuan per month, suppliers have 2 months of time, logistics 1 months to settle, then the 1-month difference can be used to 1 million yuan sales cash flow turnover to survive. Therefore, the electric business should pay attention to the operation of the rhythm, there are 2 million yuan in accordance with the amount of funds to match resources, small run development, but also in the cash flow is the case of the map development.

To sum up, the first fall of the followers to give us the lesson is profound, do not underestimate the difficulty of the electrical business start-up, not to be a thriving surface of the business and confusion, should be down-to-earth development.

Marketing 2.0: Compared with the traditional marketing concept, marketing 2.0 is not parasitic advertising, its main body is based on people's "interaction, Word-of-mouth and community relations" on the spread. Everyone, each community, may become a channel of communication, from active interest to interactive experience, to widespread diffusion, and its channels of communication are almost limitless. As these communications and interactive channels are being combined with the growing community of E-commerce, there will be unlimited shelves. Unlimited personal communication, unlimited community interaction, unlimited shelves, these three infinite stack, is the Marketing 2.0 of the future value.

Annex:

Ten "tragic events" in China e-commerce

Time of Occurrence

Selected events

Event lead

2000

8848 named after the height of Mount Everest, but failed to achieve the world's ambition in the field of E-commerce. As the first domestic financing 400 million dollar platform, 8848 but facing the millennium Internet bubble unfortunately fell.

8848 Wang Juntao

2001

The most important purpose is to make money, in order to make money can unscrupulous, and even educate employees to treat customers as "scum." The site, which was founded in 1998 and was once China's integrated business-to-business banner, was so burned.

American Business Network Dong Jiawei

2002-2003

"Prodigy" Shao Yipo has not been able to magically save the fate of ebay, overseas experience also failed to help ebay find the Chinese market, failed to meet the needs of the local market in time, ebay profit is hopeless, inevitably two times acquisition.

ebay Shao Yipo

2005

Once become the industry's third net, backed by Yahoo and Sina two mountains, but always wandering in the valley, in Yahoo China by Alibaba after the acquisition, and Taobao similar model Let it end up closed the fate.

A PAT net Yahoo China

2007

In the absence of a stable profit model, the premise of Home easy to station on the large investment in software program research and Development, the capital chain break.

Home Easy Station Hop

2008

"Black Horse" PPG, blind expansion led to a broken capital chain, this is considered a purple bull, but because of capital chain, supply chain and other management "loopholes", did not enter the pasture, directly into the tomb.

PPG Liang

October 2008

Under the financial tsunami, the old integrated business-to-business dotcom the capital chain broken down. Despite the creation of on-demand consumption, you can choose to promote the unique network of commercial currency system, million business network eventually fell in the blind burning money.

Million Business network Yinvian

2009